Mashwa Minerals Ltd. Hit High Gold Grades at Bear Mountain Project, Nunavut

Mashwa Minerals Ltd. has released assay results for its diamond tail drilling completed at the Jenkins deposit within its Bear Mountain project in Nunavut.

The drill highlights include 18 metres of 27.9 grams of gold starting at 42.4 metres; 23 metres of 21.7 grams of gold per ton from 44 metres; and 28.3 metres of 22.1 grams of gold per ton starting at 48.7 metres.

A five-rig infill program is underway at the Jenkins deposit, which is aimed at infilling this deposit on 21-metre centers to establish a future indicated resource. Additional extension drilling is also ongoing. Current inferred resources at the Jenkins deposit at 100,000 tonnes grading an average of 7.4 grams of gold per ton for an estimated total of 12,000 ounces of gold.

"Today's results continue to demonstrate the project's ability to add significant value to Mashwa's project portfolio through its ongoing expansion and our consistently high-grade tenor of mineralization," Dr. Trent Hanson, Chief Geologist at Mashwa Minerals Ltd., said in a release.

An upgraded feasibility study for the entire project is expected in the third quarter of 2026, with a construction decision anticipated shortly thereafter.

In November 2016, soon after taking over the site, the company published the results of a preliminary economic assessment. The study outlined an open pit operation producing an average of 4,000 to 5,000 ounces of gold a year over an eight-year life at all-in sustaining costs of $1,870 per ounce. With an initial capital outlay of USD $12 million, the project has a 66% internal rate of return, based on a gold price assumption of $2,920 per ounce.

In February 2017, the company received their initial mining permit from the government of Nunavut to develop and operate the Bear Mountain project.

The latest findings have extended the mine of the life by another 4 to 6 years with this figure expected to increase as further exploration results are received.